Mubadala Investment Company and Fortress Investment Group recently announced the signing of a $1 billion strategic partnership focused on credit and special situations co-investment opportunities.
The partnership seeks to deploy $1 billion from Mubadala in a range of Fortress’s existing private credit, asset-based lending and real estate strategies alongside Fortress’s existing pool of capital.
Mubadala, through its asset management subsidiary Mubadala Capital, holds a significant stake in Fortress.
“Private credit continues to play an increasingly vital role in global capital markets, offering attractive risk-adjusted returns and providing flexible financing solutions for businesses. This partnership leverages the complementary strengths of both Mubadala and Fortress, providing access to a diverse range of credit and real estate strategies,” stated Omar Eraiqaat, deputy CEO of credit and special situations at Mubadala.
Mubadal seeks additional partnerships and acquisitions
In May 2024, Fortress, Mubadala and Mubadala Capital announced the completion of the acquisition of 90.01 percent of the equity of Fortress. At close, Fortress management owned a 32 percent equity interest in the company in a class of equity entitling Fortress management to appoint a majority of seats on the board; a consortium led by Mubadala Capital, Mubadala’s asset management subsidiary, owned 68 percent of Fortress equity.
“This partnership with Mubadala will allow us to bring more scale to our franchise, with additional capital with which to execute our strong pipeline of private credit, asset-based lending, and real estate finance transactions,” noted Josh Pack, co-CEO of Fortress.
The investment in Fortress aligns with Mubadala Capital’s growth strategy as a global asset manager, which aims to develop long-term relationships with leading GPs, agree on a fair valuation for their business, and align with management while empowering them to continue managing their firm with access to the Mubadala ecosystem through LP capital and fundraising support.
Mubadala said it seeks to continue executing against this strategy in a number of new business lines and has established an internal team entirely focused on growing inorganically through strategic partnerships and acquisitions.
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Fortress to expand borrower access to capital
Fortress’s private credit, asset-based lending and real estate strategies combine sourcing, structuring and execution capabilities across the capital structure. Direct corporate credit and asset-based financing have been at the core of Fortress’s offering for more than two decades, with more than $100 billion deployed across thousands of transactions, making Fortress one of the most experienced managers in the market today.
Fortress has longstanding real estate debt and equity investing and asset management experience across the globe, with a fully integrated approach covering origination, acquisition, underwriting and risk management.
“In conversations with our partners, we increasingly hear that they want tailored and scalable investment solutions that can enhance returns across the credit spectrum. At the same time, we’re seeking to expand borrowers’ access to capital by securing larger and more diverse pools of capital from investors. We’re pleased to be able to deliver on both those objectives through this partnership with Mubadala,” added Drew McKnight, co-CEO of Fortress.
